Is it good news or bad for your military housing budget for 2021?

Overall, this is good for most Active Duty military families as BAH (Basic Allowance for Housing) rates increased by an average of 2.9% nationwide.

Roughly 1 million servicemembers and families receive BAH, which will amount to roughly $23 billion in 2021. Previously, BAH used to be set to cover the entire average expenses for living off-base in a 2, 3, or 4 bedroom home based on family size and paygrade, and as of several years ago, the Dept of Defense set BAH on a path to longer term sustainability by having BAH cover what should amount to an average of 95% of off-base living expenses. If you live in privatized housing on base, BAH covers 100% of your housing cost.

Though BAH has increased by 2.9% on average, this doesn't mean that it went up for everyone; this is over an average of roughly 300 military installations, and so in some cases, the housing allowance for an area may decrease.

If you are currently receiving a BAH that is higher than the new approved BAH for your zip code, paygrade and family status (with or without dependents), you will be grandfathered into the current higher BAH. If your BAH increased, however, then you will begin receiving the higher BAH rate as of Jan 1, 2021. 

So what does that look like for San Antonio? Overall, BAH rates increased slightly, and adjust downward for some senior paygrades. Check out a quick overview below! If you've got questions about how much house this can afford you with current interest rates, send us a message on our Contact Page or call us at 210.756.3553.

2020 Rates:

E4 with Dependents: $1,617
E5 with Dependents: $1,656
E6 with Dependents: $1,761
E7 with Dependents: $1,776
O2 with Dependents: $1,758
O3 with Dependents: $1,806
O4 with Dependents: $2,022
O5 with Dependents: $2,175
O6 with Dependents: $2,193

New 2021 Rates:

E4 with Dependents: $1,654
E5 with Dependents: $1,761
E6 with Dependents: $1,788
E7 with Dependents: $1,803
O2 with Dependents: $1,785
O3 with Dependents: $1,818
O4 with Dependents: $1,920
O5 with Dependents: $2,013
O6 with Dependents: $2,028

For a wider range of paygrade rates and single servicemember rates, check out the DoD's BAH Calculator here.